If Demand for Good Is Very Inelastic and Supply for the Good

question 70

Multiple Choice

If demand for good is very inelastic and supply for the good is very elastic a sales tax imposed on sellers will cause the price received by sellers

• A) would not change very much.
• B) would rise by more than the amount of the tax.
• C) would fall by an amount of the tax.
• D) would fall by more than the amount of the tax.

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Definitions:

Infrastructure

The fundamental physical and organizational structures needed for the operation of a society or enterprise, such as roads, bridges, and water supply.

Superstructure

In Marxist theory, the cultural, legal, political, and ideological systems and institutions that derive from and support the economic base of a society.

Ethnocentrism

The act of judging another culture solely by the values and standards of one's own culture.

Cultural Relativism

The idea that a person's actions and convictions should be interpreted by others within the context of that person's own cultural background.